Gold Once Again Tests Strong Overhead Resistance (GLD)

From John Rubino: Just when everyone was getting used to gold sitting around and doing nothing while tech stocks provided non-stop thrills and chills, the metal took off this morning on the “news” (read “Tweet”) that Trump is aiming some cruise missiles at Syria.

Now the $1,360 resistance level that has been an absolute brick wall since 2014 is looming once again, and gold-bugs are – once again – wondering where the next resistance lurks if this level is finally pierced.

The correct answer is that the chart doesn’t (or at least shouldn’t) matter in a world where Russia might soon be trying to shoot down US cruise missiles, Chinese and US aircraft carriers are staking competing claims to the South China Sea and trillion-dollar deficits are explicit and unapologetic government policy.

But until fundamentals retake control and precious metals start acting like bitcoin circa 2017, charts like this one are a fun diversion.

The SPDR Gold Trust ETF (GLD) closed at $127.45 on Friday, up $0.83 (+0.66%). Year-to-date, GLD has gained 3.07%, versus a -0.64% rise in the benchmark S&P 500 index during the same period.